What a difference a few days makes! I was away for the bulk of this week and had no internet access for 2 days, it looks like the world changed (it did not, only the perception) in the blink of an eye. 2 weeks ago was day 1 of the “2 day smash” in Gold and Silver, here we are 2 weeks later and even the most asleep at the wheel and uninformed can see and knows that the “price” just ain’t the price! [Read more...]
In the midst of the latest epic cartel paper gold and silver raid this week, legendary precious metals expert Eric Sprott sat down with The Doc for an exclusive, MUST LISTEN interview.
In one of his best and most shocking interviews ever, Eric discusses the latest gold and silver raid, his take on the platinum & palladium markets, the Bundesbank’s recent gold repatriation request and the correlation with massive physical gold buying in Asia, and his view on how the endgame of the Western financial/ debt crisis will play out.
Sprott stated that the Treasury Department’s 2012 GAAP budget deficit report was an astonishing $6.9 Trillion, and this has not been reported in 1 single major news outlet! He also stated that the US government may be exporting German gold from the NY Fed to China, and that despite their recent apparent success, he expects that one day soon the cartel will be brought to their knees simply by traders standing for delivery of physical metal.
Eric Sprott’s full MUST LISTEN audio interview with The Doc is below: [Read more...]
BrotherJohnF’s latest Silver Update:
Silver vs. Paper
COMEX Sets All Time Volume Record for Silver, 2.5 Years Global Mine Production Trades in Single Day!
COMEX silver futures traded an all-time daily record of 376,301 contracts today, surpassing the previous record of 319,204 contracts set on April 26th, 2011. The volume traded in the front month of March alone was a record setting 354,295 contracts!
To put the number in perspective, 376,301 contracts represents 1.88 billion ounces of paper silver, or approximately 2.5 years of the entire global silver mine production!
The 1.88 billion ounces of paper silver traded Tuesday amounts to 902 days of global silver production!!
1.88 billion ounces of paper silver dumped on the market in one day, and all Blythe could induce was a mere .50 decline in the price of silver.
*Updated 9am 2/20: CME has scrubbed the data, now reporting only 97,975 contracts traded yesterday
Although Open Interest remains high in silver, the CME must need a new flock of investors to fleece in paper metals, as the CME announced after Thursday’s market close a major reduction in gold and silver margins effective after the close Tuesday Feb 12th.
The CME cut gold initial and maintenance margins from $6,600 & $6,000 to $5,940 & $5,400 respectively, and also slashed silver initial & maintenance margins from $12,100 & $11,000 to $10,400 & $9,500, a reduction of 10% in gold & 14% in silver!
For those new to the market who might be wondering why silver margins have been $12,100 while golds have been $6,600 (particularly when a single gold contract is valued at ~ $165,000, while a single silver contract is valued at ~$158,000)…. [Read more...]